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TMX Group Limited (X)
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BCE Inc. (BCE)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: I purchased BCE awhile back for its very good dividend and some modest growth, thinking it was more “bond” like.
Now with the recent news I am not so sure this is the case. I am overweight in it and wondering what to do with it, whether to keep it and collect the dividend, or if it would be better to sell it or at least some of it.
I could use the loss to offset some of my gains I guess, but I am unsure what is the best move. I don’t need the money, so would probably reinvest the money in another stock.
I am asking for your advice on this investment.
Thanks so much for your past service, it has always been most helpful.
Now with the recent news I am not so sure this is the case. I am overweight in it and wondering what to do with it, whether to keep it and collect the dividend, or if it would be better to sell it or at least some of it.
I could use the loss to offset some of my gains I guess, but I am unsure what is the best move. I don’t need the money, so would probably reinvest the money in another stock.
I am asking for your advice on this investment.
Thanks so much for your past service, it has always been most helpful.
5i Research Answer:
While we would be fine owning BCE, with the recent drop we would also be fine with moving on from some/all of BCE for tax purposes. The tax loss is guaranteed, while nothing else in the market it. The stock should continue to serve as a solid income option, but with dividend growth slowing, it is less attractive. Aggressive job and spending cuts point to the fact that BCE is not going to provide much growth and analyst forecasts reflect this as growth in revenue and EPS is expected to be slow in the next few years. But, of course, some or all of this news is reflected in the stock price with the recent decline. If the goal is still income with modest growth potential we would suggest BAM and X.